Ethereum’s new all-time high and BTC Dominance dropped as a sign that An altcoin season is at hand
The cryptocurrency market saw its second day of gain after the weekend sell-off which proved to be a good buying opportunity for institutional and retail investors. In it, Ethereum’s new all-time high, a drop in Bitcoin’s dominance rate and overhead resistance at $ 55,000 have analysts predicting that an Altcoin season is at hand.
BTC/USD 4-hour chart | Source: TradingView
Many factors are suggesting that Altcoin season has come as ETH hit new highs, BTC Dominance declines
Lower gas fees following the Ethereum network upgrade in Berlin coupled with an increase in institutional buying and decentralized finance have lifted the price of Ether to an all-time high of $ 2,680.
Bitcoin price rallied above $ 54,000 in early Tuesday’s trading hours and the bulls are now aiming to break through the $ 55,000 resistance level to a possible rally to $ 58,000.
With Ether and altcoins showing signs of strengthening while BTC is still limited in range, there is growing more talk on Twitter about cryptocurrencies as traders speculate on whether an altcoin season is coming starting or not.
As highlighted in a recent report from Ben Lilly, co-founder and analyst at Jarvis Labs, the strong 11.5% rally on April 26 was similar to previous price rallies. BTC after bottoming out.
Source: Coin360
Several altcoins saw their prices hit new record highs alongside Ether on Tuesday. Polygon (MATIC) continues the strong rally, rising as high as $ 0.75 before taking what appears to be a short breath. Uniswap (UNI) also saw its token price hit a record high at $ 40.50 after rising 17% from its low on April 26.
The overall crypto market cap represents $ 2.08 trillion and Bitcoin’s dominance rate is 49.5%.
The theory says that each Altseason, Bitcoin loses a bit less of its total percentage. And then, it regains about half of what it lost. It’s not a precise theory. In Spring 2017’s Altseason, Bitcoin’s dominance shrunk to 38%. It slowly gained it back, until Winter 2017/ 2018’s Altseason arrived. At that time, Bitcoin’s dominance got to 32%.
All of that means that, if the indicators are pointing in the right direction, this Altseason is just starting. If Bitcoin’s market capitalization dominance falls from 51% to the 30%-range, that’s a lot of money entering the Altcoins market. And this time, we mean a lot.
You can see the BTC price here.
Read more:
- Strong Bitcoin Price Reversal Was Accompanied By A Market-Wide Rally Where The Majority Of Altcoin Were Green
- Tesla Sold Some Of Its Bitcoin Stash In The First Quarter For $272 Million In Proceeds